Multi conglomerate ITC Ltd has further invested Rs 13.50 crore in D2C baby care brand Mother Sparsh, which is in advanced discussions with other investors to raise Rs 90-100 crore in Series B funding.
The direct-to-consumer (D2C) brand on Wednesday said it is in advanced discussions with investors for securing Rs 90-100 crore in Series B funding, with ITC infusing Rs 13.5 crore in this.
ITC in a late-night regulatory filing on Tuesday said that after the deal, its shareholding in Mother Sparsh will go up from the existing 16 per cent to 22 per cent.
"The Company has entered into an agreement to acquire further 1,000 Compulsorily Convertible Preference Shares of Rs 10 each of Mother Sparsh. The said shares, once acquired, will take the Company's shareholding in Mother Sparsh to 22 per cent," the filing said.
The acquisition is in line with the company's continued interest in the fast-growing D2C space in the personal care category, ITC added. In November last year, Mother Sparsh raised Series A funding from ITC.
Mother Sparsh, incorporated in February 2016, registered a turnover of Rs 33.53 crore in FY22. After Series B funding, the D2C brand intends to enhance its portfolio, especially across baby skin care and mother-oriented segment. It had recently forayed into the diaper segment.
"Mother Sparsh's objective behind the Series B funding round is to enhance R&D and foster innovation in the critical baby & mom care segment alongside sustained product portfolio diversification," it said.
Mother Sparsh co-founder and CEO Himanshu said: "Our recurrent funding aims to strengthen this mission through R&D in the space and offering one-of-its-kind solutions for the needs of mothers and their little ones".
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